Libra’s Backers Are Now Backing Out, What Next?

2019-08-24

According to a report by Financial Times (FT), at least 3 backers of the controversial Facebook cryptocurrency project, Libra have denounced their support for the proposed global project.

Libra came onboard the cryptocurrency scene with a grand plan to bank as many as 1.7 billion unbanked people across the globe. Facebook, with its 2.6 billion users globally, shows great potential for developing an effective global cryptocurrency. Recognising this potential, 27 founding members joined the “highly profitable non-profit organization” for the project.

However, a mix of controversies around Libra’s privacy policies and stern regulatory proceedings by many global regulators have become a stumbling block in the development of the project.

Regulations Discouraging Libra’s Backers

Amid struggles to adjust to regulatory demands and regional governmental policies, at least three companies out of the 27, which are part of the Facebook’s Libra project, are reportedly considering disassociating themselves from the project.

According to one of the founding members of the Libra association,

“I think it’s going to be difficult for partners who want to be seen as in compliance [with their own regulators] to be out there supporting [Libra], “

Facebook Expresses Difficulties With Libra

Facebook raised the hopes of billions of people globally when it announced its Libra project in April, the launch of which was set to occur in 2020. However, the possibilities of the launch are constantly getting crushed due to concerns from regulators all across the world.

According to reports, Facebook indicated that Libra drew much more scrutiny from governments, banks, regulators, and corporate bodies than it needed to survive. The scrutiny is expected to continue and even swell in magnitude.

Recently, a group of six U.S. lawmakers, led by Democratic Congresswoman Maxine Waters, announced their proposed visit to Switzerland, the association’s headquarters, in “the coming days” to discuss the Libra project.